Langholm backs financial services deal

Langholm Capital Partners has invested £24.5m in a newly-formed UK-based provider of financial products in the retirement sector called Just Retirement.

Langholm Capital Partners, the London-based private equity fund, has invested £24.5 million (€36.5 million; $45 million) in Just Retirement, a start-up financial services company that received its authorisation from the Financial Services Authority last week.

The deal is part of an overall £60 million funding package which includes £35 million of reinsurance finance from German insurance firm Hannover Re and Interpolis, an insurance subsidiary of Dutch Rabobank, alongside a £500,000 commitment from management.

The transaction is Langholm’s third investment since its inception in 2002, following commitments in 2003 to French dietary supplements company Physcience and Finnish skin care manufacturer Noiro Oy.

Langholm was founded by majority owners Bert Wiegman, Andrew Beaton and Christian Lorenzen in January 2002. The firm held a final close of its debut fund on €242 million in December 2003 after a first close in September 2002 on €225 million.

Bert Wiegman was previously chief executive of EAC, an independent private equity fund; Andrew Beaton established the European private equity operation of GE Capital and Christian Lorenzen was previously a director of Industri Kapital based in Hamburg.

Investors in the fund included FMCG conglomerate Unilever who provided a €100 million cornerstone stake, Rabobank International who put up €75 million, UK leisure company Whitbread, Fortis ASR (a subsidiary of Dutch Fortis Bank) and fund of funds investor Access Capital Partners.

Langholm currently has a staff of twelve individuals operating out of its London headquarters. Its debut fund is reported to be approximately 35 percent invested at this stage.